The Ministry of Finance is planning to implement a luxury tax to narrow the wealth gap between the country’s rich and poor, MOF Minister Lee Sush-der said Feb. 25.
The proposed plan has been endorsed by ROC President Ma Ying-jeou, who said the tax will help promote social justice and is in line with public expectations, according to sources familiar with the issue.
According to the plan, a 10-percent tax will be levied on ostentatious purchases of yachts, private jets and luxury cars with a price tag exceeding NT$3 million (US$100,800), as well as club memberships valued over NT$500,000.
Also, a 10 percent to 15 percent additional sales tax will be assessed on real estate which changes hands within one to two years for investment purposes. “The move will be able to achieve tax justice and check real estate speculation,” Lee pointed out.
The additional tax revenues will be allocated for social welfare programs, the minister added.
MOF officials said the ministry will consult relevant government agencies and organize public hearings on the matter before making an official announcement in March.
The proposal will then be submitted to the Executive Yuan and Legislature for approval. If everything goes as planned, the new tax will take effect in the second half of the year at the soonest, they said. (HZW)
Write to Meg Chang at meg.chang@mail.gio.gov.tw